One of the causes for the rejection was the possibility that corporations manipulate records to be eligible for the benefit

The Committee for Economic Development, Industry and Commerce rejected, last Wednesday (5), the Complementary Bill 267/08, by Deputy Silas Câmara (PSC-AM), which exempts the micro and small businesses from payment of federal taxes during their first four years of incorporation.

According to its rapporteur, Deputy Osório Adriano (DEM-DF), despite the proposal being benefic to the consolidation of starting businesses, it can foster manipulations. In his opinion, the exemption would permit other corporations to manipulate their records in order to be eligible for the benefit.

Unfair competition
Adriano also argued that the situation could cause unfair competition. “It could be a factor of unfair competition, which would disaggregate the businesses established for more than four years, and which must comply with the simples nacional system, which are not covered by the exemptions” he said.

The rapporteur stated also that the proposal is very broad and that it would cause an expressive fiscal waiver, whose amount hasn’t been estimated.

Procedure
The Project, submitted to plenary, was deemed conclusive power, and will be analyzed by the Committees for Finance and Taxation; and for Constitution and Justice and Citizenship.

 

Report - Vania Alves
Editing - Newton Araújo Jr.